AIA denies Korea exit rumours

September 21 2017 by InsuranceAsia News Staff

AIA Group CEO Ng Keng Hooi has denied rumours that the company is planning to leave the Korean market.

Ng told reporters that the group is, in fact, considering additional funding for the Korean market if necessary to comply with the new IFRS 17 accounting standards for insurance contracts.

He reaffirmed AIA Group’s intention to incorporate the local unit soon, adding that the insurance group has never withdrawn from any market around the world.

The group’s W300 billion (US$260 million) acquisition of a building for a regional office in Korea three years ago also illustrates AIA’s commitment, Ng said.

AIA Life Korea CEO Cha Tae-jin said the insurer is ready to raise more funds in case the IFRS 17 adoption requires a capital increase.

AIA Group, which first entered Korea in 1987, posted a net profit of W177.7 billion in the first six months of this year, double that of the same period in 2016.